is it worth the risk?, page-30

Reganbaha,

I have no doubt that the share price will go back to where it was after the initial announcement (with the assumption they get the license to mine);

The reason I believe that is it's a fair assumption to say that consumption of rare earths is going to grow over the coming years. It is my view that china's decision to limit the exports is two fold;

1. Consumption - the uses for the elements are growing and in reality the availability of them will not match this rate.

2. Gross domestic production - By limiting the amount that is allowed to be exported, I believe china is trying to force companies to move their production plants to china, with the net effect of boosting their economy and starving those outside.

The implications of the above are that their is real demand for other sources of these products outside of china.

I don't think you can compare ggg to the other rare earth companies that you talk of. In terms of grade and size, the U deposit alone is in the top 5 in the world (or at least quoted by the company). Their is only a handful at most of deposits larger and at higher grades. Ext is one with higher grades, but at this point their deposit isn't anywhere near as large. They have a market cap of 2.2 bill to put that in perspective.

Anywhos, I actually think that ggg will never get close to mining this if they are given the license to mine. This company will be taken out long before it ever gets to production. The reality is that rare earths are going to play a major part in the future and its not hard to see ggg being a large part of that.

When u say it is lower grades in term of it's U deposit. I'm just curious which other deposits are larger and at a higher grade? I can think of higher grades, but i can't think of many deposits which are both.

Thanks